Imagine finding the perfect used boat, but there is just one catch: you need a loan to make the purchase. Boat loans are generally not overly complicated but financing a used boat can seem daunting. You might be wondering how to finance a used boat, where to start looking for used boat loans, and if a used boat can qualify for boat loan financing.
The good news is that many used boats qualify for boat loans. You simply need to know how used boat financing works, what to expect, and which boats qualify for a used boat loan.

How Hard Is It To Get A Used Boat Loan?

Financing older boats is not that much harder than getting a new boat loan. There are just a few extra steps to take and some general eligibility criteria you should be aware of. The age, condition, length, and current valuation of the boat will be factors that impact how hard it is to secure used boat financing. You may also need to have a qualified surveyor report of your vessel.What do you need to do to get a used boat loan?

Plan to pay for a full survey to be conducted on the used boat you hope to finance. Not only will a survey help ensure that you are not buying a boat with hidden and potentially expensive problems, it will also provide the potential lender with valuable information on which to base a loan decision. The condition of the boat will help determine its valuation, and thus how high a loan amount it is eligible for. The loan to value ratio must check out for you to receive credit approval.

How Old Of A Boat Can You Finance?

Boats that were built within the last 15 years are usually easier to finance than older vessels although some lenders may offer loans for boats over 20 years old. Longer boats hold value better, so a 25-year-old 50-foot boat may qualify for a loan whereas an 18-foot boat that is 20 years old might not. The rule of thumb is that once you get over the 15-year threshold, it is more challenging and more expensive to secure used boat financing.

How Long Can You Finance A Used Boat?

Older boat financing terms are typically shorter than the loan terms that would be offered on a new boat loan. New boat loans over $25k can have a loan term of up to 15 -20 years. That term is based on the loan amount and the anticipated depreciation schedule of the vessel. Since the boat is new, the creditor has a longer period of time before they would be upside down on the loan to value ratio.

On the other hand, with a used boat, the value of the boat is already lower, and it would be harder to resell if you were to default on the loan. Loan terms for a used boat may only qualify for a shorter term.

What Is A Good Interest Rate On A Used Boat Loan?

When you finance used boats, be prepared to see interest rates higher than those for new boats. This is because the lender is exposing itself to greater risk by extending older boat financing. The minimum loan amount for a used boat loan may also be higher than that of a new boat loan. Rates and terms will also be affected by the size of your down payment. A larger down payment may correspond with more favorable terms.

Where To Get Used Boat Financing?

When you are ready to finance your used boat, look for the best used boat loans from a marine financing company that works with a wide range of lenders to find you the lowest interest rates and best loan terms.

Contact Azure Funding today, and a marine financing representative will walk you through all your options, helping you secure the loan you need with competitive rates you’ll love.



*All information in this post including, but not limited to, quotes, rates, term-length, and other loan information is purely informational and may not reflect your actual terms. Actual loan terms will be dependent on a number of actors including your personal credit history, assets, debt to income ratio, and more. Please speak with an Azure Funding representative today by clicking here to discuss your individual financial situation.